Copper Intelligence, CoTec partner for DRC copper tailing processing 

Copper Intelligence (OTCID: CUAI) and CoTec Holdings Corp. (TSX-V: CTH) (OTCQB: CTHCF) have entered a joint venture to process historical copper tailings in the Democratic Republic of Congo, as demand for the metal continues to rise. 

The partnership will pursue copper-tailings opportunities in the DRC’s historical copper districts, which have been generating large volumes of mining waste since the 1950’s. 

The companies will seek funding from the US International Development Finance Corporation and other funding sources once projects reach sufficient scale. 

“The joint venture with Copper Intelligence provides CoTec with a long-term partner who has a demonstrated resource execution in a world class copper district. We are excited to progress towards securing assets which can utilize our technologies as we build out our asset portfolio,”  Julian Treger, CEO of CoTec said. “The DRC has a rich copper mining history that we expect would be reflected in its potential scalable tailings opportunities.”  

The agreement comes as copper trades near record levels amid expectations that growing electricity, infrastructure and data-centre requirements will strain global supplies. The metal is on track for a third consecutive monthly gain, up about 9% in September after reaching a record $14,875 earlier in the month.  

Shares in Copper Intelligence were up 61.13% to $15.71 apiece by mid-day Tuesday in New York, valuing the company at $1.2 billion. Cotec shares were up 0.81% to C$1.25 ($0.88) apiece by mid-day Tuesday in Toronto, valuing the company at C$150.5 million ($106 million).   

The partnership  

CoTec’s technologies, which are developed to extract rare earth and strategic materials, will be used to enhance economic potential of historical tailings sites and redundant copper deposits. Copper Intelligence brings its knowledge in the region to the partnership, aiming to further explore and develop high-potential copper assets in the DRC. 

“We look forward to a strong and profitable relationship with a team that has achieved a track record of success in Africa for many decades,” Copper Intelligence chairman Andrew Groves said. “This transaction further contributes to our vertically integrated vision for Copper Intelligence, and augments the dimension of our approach.”  

Two third-party investment vehicles associated with CoTec’s CEO, Julian Treger, and Chairman, Lucio Genoves, are also parties to the venture. The joint-venture company is being incorporated in the British Virgin Islands. 

Opportunities identified will be subject to detailed legal and technical due diligence and binding agreements on an asset-by-asset basis before development proceeds. Commitments will also require approval from independent members of the the joint venture and CoTec boards prior to resources being committed to development. 

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